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REPORTABLE SEGMENTS | 9 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
REPORTABLE SEGMENTS | REPORTABLE SEGMENTS The Company discloses segment information under four reportable segments, consistent with the way operating results are evaluated by management. The segments are further described below. These segments are strategic business groups that are managed separately as each represents a specific grouping of related automotive components and systems. In prior quarters, the Company presented its results under three reportable segments: Air Management, Drivetrain & Battery Systems and ePropulsion. Effective July 1, 2024, the Company implemented a new business unit and management structure designed to further enhance the execution of the Company’s Charging Forward strategy. The Company now reports its results in the following four reportable segments: Turbos & Thermal Technologies, Drivetrain & Morse Systems, PowerDrive Systems and Battery & Charging Systems. The reportable segment disclosures have been updated accordingly, which included recasting prior period information for the new reporting structure. •Turbos & Thermal Technologies. This segment’s products include turbochargers, eBoosters, eTurbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters and battery heaters. •Drivetrain & Morse Systems. This segment’s products include control modules, friction and mechanical clutch products for automatic transmissions, torque-management products and rear-wheel drive (“RWD”) and all-wheel drive (“AWD”) transfer case systems and coupling systems. Additionally, the Drivetrain & Morse Systems products include chain systems and variable camshaft phasing products. •PowerDrive Systems (formerly ePropulsion). This segment’s products include power electronics such as inverters, onboard chargers, DC/DC converters and combination boxes, rotating electric machines, fully integrated drive modules (consisting of inverter, eMotor and gear reducer), and electronic controls. •Battery & Charging Systems. This segment’s products include high-performance lithium-ion battery systems for electrified bus-, truck- and off-highway applications and DC (direct current) fast chargers suitable for all types of electric vehicles. Segment Adjusted Operating Income (Loss) is the measure of segment income or loss used by the Company. Segment Adjusted Operating Income (Loss) is comprised of operating income for the Company’s reportable segments adjusted for restructuring, merger, acquisition and divestiture expense, intangible asset amortization expense, impairment charges and other items not reflective of ongoing operating income or loss. The Company believes Segment Adjusted Operating Income (Loss) is most reflective of the operational profitability or loss of our reportable segments. The following tables show segment information and Segment Adjusted Operating Income (Loss) for the Company’s reportable segments: Net Sales by Reportable Segment
| Three Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2024
(in millions) | Customers |  | Inter-segment |  | Net |  | Customers |  | Inter-segment |  | Net
Turbos & Thermal Technologies | $ | 1,385 |  |  | $ | 1 |  |  | $ | 1,386 |  |  | $ | 4,472 |  |  | $ | 3 |  |  | $ | 4,475 |
Drivetrain & Morse Systems | 1,362 |  |  | 3 |  |  | 1,365 |  |  | 4,218 |  |  | 8 |  |  | 4,226 |
PowerDrive Systems | 505 |  |  | 7 |  |  | 512 |  |  | 1,390 |  |  | 22 |  |  | 1,412 |
Battery & Charging Systems | 197 |  |  | — |  |  | 197 |  |  | 567 |  |  | — |  |  | 567 |
Inter-segment eliminations | — |  |  | (11) |  |  | (11) |  |  | — |  |  | (33) |  |  | (33) |
Net sales | $ | 3,449 |  |  | $ | — |  |  | $ | 3,449 |  |  | $ | 10,647 |  |  | $ | — |  |  | $ | 10,647 |
| Three Months Ended September 30, 2023 |  | Nine Months Ended September 30, 2023
(in millions) | Customers |  | Inter-segment |  | Net |  | Customers |  | Inter-segment |  | Net
Turbos & Thermal Technologies | $ | 1,473 |  |  | $ | 1 |  |  | $ | 1,474 |  |  | $ | 4,567 |  |  | $ | 3 |  |  | $ | 4,570 |
Drivetrain & Morse Systems | 1,447 |  |  | 2 |  |  | 1,449 |  |  | 4,142 |  |  | 4 |  |  | 4,146 |
PowerDrive Systems | 556 |  |  | 15 |  |  | 571 |  |  | 1,572 |  |  | 52 |  |  | 1,624 |
Battery & Charging Systems | 146 |  |  | — |  |  | 146 |  |  | 395 |  |  | — |  |  | 395 |
Inter-segment eliminations | — |  |  | (18) |  |  | (18) |  |  | — |  |  | (59) |  |  | (59) |
Net sales | $ | 3,622 |  |  | $ | — |  |  | $ | 3,622 |  |  | $ | 10,676 |  |  | $ | — |  |  | $ | 10,676 |
Total Assets by Reportable Segment
(in millions) | September 30, 2024 |  | December 31, 2023
Turbos & Thermal Technologies | $ | 4,007 |  |  | $ | 3,938 |
Drivetrain & Morse Systems | 4,128 |  |  | 4,262 |
PowerDrive Systems | 3,326 |  |  | 3,185 |
Battery & Charging Systems | 1,380 |  |  | 1,335 |
Total | 12,841 |  |  | 12,720 |
Corporate | 2,296 |  |  | 1,733 |
Consolidated | $ | 15,137 |  |  | $ | 14,453 |
Segment Adjusted Operating Income (Loss)
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2024 |  | 2023 |  | 2024 |  | 2023
Turbos & Thermal Technologies | $ | 202 |  |  | $ | 214 |  |  | $ | 654 |  |  | $ | 660 |
Drivetrain & Morse Systems | 251 |  |  | 253 |  |  | 770 |  |  | 700 |
PowerDrive Systems | (19) |  |  | (20) |  |  | (130) |  |  | (74) |
Battery & Charging Systems | (8) |  |  | (26) |  |  | (33) |  |  | (76) |
Segment Adjusted Operating Income | 426 |  |  | 421 |  |  | 1,261 |  |  | 1,210 |
Corporate, including stock-based compensation | 76 |  |  | 72 |  |  | 196 |  |  | 194 |
Restructuring expense (Note 5) | 21 |  |  | 56 |  |  | 65 |  |  | 68 |
Intangible asset amortization expense | 17 |  |  | 17 |  |  | 51 |  |  | 51 |
Accelerated depreciation | 27 |  |  | 1 |  |  | 35 |  |  | 4 |
Commercial contract settlement | — |  |  | — |  |  | 15 |  |  | — |
Adjustments associated with Spin-Off related balances | 3 |  |  | — |  |  | 14 |  |  | — |
Collective bargaining agreement ratification bonus | 4 |  |  | — |  |  | 4 |  |  | — |
Loss (gain) on sale of businesses | 6 |  |  | — |  |  | 3 |  |  | (5) |
Asset impairment and lease modification | — |  |  | 2 |  |  | — |  |  | 11 |
Merger and acquisition expense, net | (5) |  |  | 2 |  |  | — |  |  | 18 |
Gain on sale of assets | — |  |  | (7) |  |  | — |  |  | (13) |
Other non-comparable items | 7 |  |  | 6 |  |  | 16 |  |  | 3 |
Equity in affiliates’ earnings, net of tax | (6) |  |  | (10) |  |  | (23) |  |  | (23) |
Unrealized and realized (gain) loss on equity and debt securities | (2) |  |  | 60 |  |  | — |  |  | 129 |
Interest expense (income), net | 4 |  |  | (19) |  |  | 17 |  |  | 3 |
Other postretirement expense | 4 |  |  | 3 |  |  | 10 |  |  | 8 |
Earnings from continuing operations before income taxes and noncontrolling interest | $ | 270 |  |  | $ | 238 |  |  | $ | 858 |  |  | $ | 762 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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